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I need help with the blank sections Yada expects to produce I ,900 units in January and 2, 110 units in February. The company budgets
I need help with the blank sections
Yada expects to produce I ,900 units in January and 2, 110 units in February. The company budgets three pounds per unit of direct materials at a cost of $45 per pound. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the Raw Materials Inventory account (all direct materials) on January I is 5,600 pounds. Yada desires the ending balance in Raw Materials Inventory to be 80% of the next month's direct materials needed for production. Desired ending balance for February is 4,300 pounds. Prepare Yada's direct materials budget for January and February. Begin by preparing the direct materials budget for January and February through total direct materials needed line and then complete the budget by calculating the budgeted cost of direct materials purchases. Yada Company Direct Materials Budget Two Months Ended January 31 and February 28 February Budgeted units to be produced Direct materials (pounds) per unit Direct materials needed for production Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed Less: Direct materials in beginning inventory (pounds) Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials purchases January 11900 3 5,700 5,064 10,764 45 s 2,110 3 6,330 4,300 10,630 5,064 5,566 45 250,470
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